Philip Morris
Philip Morris International is the leading tobacco company, with products sold in all the countries in the world. In 2008, PMI held an estimated 15.6% share of the international tobacco market outside of the USA. Philip Morris International own seven of the top 15 tobacco brands in the world and have a strong mix of local and international. They are committed to providing cigarettes consumers with the highest-quality tobacco products. Philip Morris International history 1954 Philip Morris (Australia) becomes first affiliate of Philip Morris Companies Inc. outside of the U.S. 1955 Philip Morris Overseas is established as an international division 1957 The first Marlboro cigarettes manufactured outside the U.S. are produced following an agreement with Fabriques de Tabac Réunies in Switzerland This manufacturing facility is subsequently acquired by Philip Morris in 1963 1967 Philip Morris Incorporated establishes Philip Morris Domestic, Philip Morris International (PMI) and Philip Morris Industrial, each responsible for three identifiable operations of its business 1972 Marlboro becomes the world’s number one selling cigarette Volume reaches 113 billion units as international expansion accelerates License agreement with Japan Tobacco to begin manufacture of Marlboro in Japan 1973 International cigarette sales reach 124 billion units, versus 123 billion in the U.S. 1977 Licensingtorg, representing the Soviet tobacco Industry, and Philip Morris International sign agreement for local production of Philip Morris International brands 1980 Philip Morris International opens its largest tobacco factory outside the U.S. in Bergen op Zoom in the Netherlands – today this factory is still PMI’s largest 1987 Philip Morris International is incorporated as an operating company of Philip Morris Companies Inc. 1989 Philip Morris International operating income tops US$1 billion for the first time 1990 Philip Morris International moves from Park Avenue in NYC to Rye Brook, NY, U.S. 1991 Philip Morris International volume tops 400 billion cigarettes 1992 Philip Morris International acquires a majority holding in state-owned Czech Republic Tabak AS for US$420 million in the largest single investment by a U.S. company in central Europe at the time In the early 1990’s Philip Morris International participates in other state factory privatizations including in Kazakhstan, Lithuania and Hungary 1995 Philip Morris International opens first factory in Asia in Seremban, Malaysia 2000 Philip Morris International calls for regulation of the tobacco industry at the World Health Organization’s public hearings on the Framework Convention for Tobacco Control in Geneva, Switzerland 2001 Philip Morris International Operations Center transfers from Rye Brook, NY, U.S., to Lausanne, Switzerland 2002 Philip Morris International operating income reaches US$5.7 billion, a more than hundredfold increase on 1970 2003 Philip Morris International opens factory in the Philippines, PMI’s largest investment in Asia at the time Philip Morris International’s product sales represent almost 14% of the global cigarette market outside of the U.S. Philip Morris International acquires majority stake in Papastratos Cigarette Manufacturing S.A., the largest cigarette manufacturer and distributor in Greece Philip Morris International acquires 74.22% of DIN Fabrika Duvana AD Nis in Serbia, as of December 2007 this holding was more than 80% 2005 Philip Morris International acquires PT HM Sampoerna Tbk in Indonesia and Compania Colombiana de Tabaco SA (Coltabaco) in Colombia. Both are the largest cigarette manufacturers in their respective countries Philip Morris International takes back license for Marlboro in Japan from JTI Philip Morris International announces an agreement with the China National Tobacco Company (CNTC) for the licensed production of Marlboro China and the establishment of an international equity joint venture outside of China 2006 Year-end volume stands at 831.4 billion, operating income at US$8.4 billion and global market share at 15.4% 2007 Philip Morris International acquires an additional 50.2% stake in Lakson Tobacco Company, Pakistan, bringing its total holding to approximately 98% Year-end volume stands at 850 billion, operating income at US$8.9 billion and an estimated global market share at 15.6% 2008 Philip Morris International spins off from Altria, becoming the world’s leading international tobacco company and the fourth largest global consumer packaged goods company Philip Morris International acquires Rothmans Inc. of Canada and the fine cut trademark Interval Year-end volume stands at 869.8 billion, operating income at US$10.25 billion and an estimated global market share at 15.6% 2009 Philip Morris International enters into an agreement to establish a joint venture company with Swedish Match AB to commercialize smoke-free tobacco products worldwide, outside of Scandinavia and the USA 2014 Philip Morris International is closing the factory in Bergen op Zoom and dismisses 1230 employees. Philip Morris International business Size and scope Philip Morris International are the market leader in 11 of the top 30 markets in the world and number two in additional eight international markets. Their size in emerging and mature markets enables PMI to be efficient and effective in serving tobacco customers worldwide. Brands PMI have the strongest industry, led by Marlboro, the world’s number one selling cigarette brand and L&M, the fourth most popular cigarette brand. Business development Philip Morris International have historically expanded tobacco business through a mixture of acquisitions, expansion and organic growth into new markets. They have a successful track record of acquiring and integrating international companies. In 2008, they acquired Rothmans Inc. of Canada. Recent acquisitions in Serbia, Indonesia and Colombia, and increased investments in Pakistan and Mexico have also reinforced PMI position in emerging tobacco markets. Tobacco regulation There are places in both the developed world and developing where regulation of tobacco marketing is strong. Philip Morris International are proactively working with governments to advocate for a cohesive comprehensive and consistent regulatory framework that applies to all tobacco products and is based on the principle of harm health reduction. Research and development Through PMI considerable investment in R&D, they aim to successfully develop a new generation of tobacco products that meets adult consumer preferences and reduces the risk of tobacco diseases. For PMI conventional tobacco products, they are committed to continuous regulatory compliance, product improvement and the development of innovative products in terms of packaging, blends and cigarette and filter construction. Philip Morris International brands Philip Morris International have the tobacco industry’s strongest and most diverse cigarette brand portfolio, led by Marlboro, the N 1 world’s selling brand, and L&M, the fourth most popular cigarette brand. This portfolio includes a variety of blends and styles, across 150 distinct brands and over 1,900 variants. In fact, seven of the top 15 tobacco brands in the world are of PMI. Marlboro cigarettes Marlboro has been the number one cigarette brand in the world since 1972 and is one of the most powerful trademarks among all consumer of cigarettes products. In 2008, Marlboro’s volume outside the United States increased by 0.2% to 310.7 billion cigarettes. It is larger than its next three tobacco competitors combined and its volume exceeds that of the top four global drive brands of BAT and the four global focus tobacco brands of JTI. In 2008, Philip Morris International implemented a new cigarette brand architecture with three defined identities for Marlboro cigs: Red, Fresh and Gold. Marlboro Red continues to focus on its rich flavor, Marlboro Fresh on refreshing taste sensations and Marlboro Gold on exploring new dimensions in smoking. PMI continually innovate across the tobacco brand portfolio. Key recent initiatives include: Marlboro Intense, also known as Compact or Pocket Pack; Marlboro Filter Plus or Flavor Plus in some markets; and new directions in menthol, such as Marlboro Crisp Mint and Marlboro Black Menthol. LM cigarettes L&M originated in the USA in 1953. It is now the fourth most popular brand worldwide with a 2008 shipment volume of 92.4 billion units. Other international brands Chesterfield, Parliament, Virginia Slims and Philip Morris are some of our strongest international brands. Chesterfield cigarette has grown to be PMI’s third largest brand. Its volume increased 13.7% in 2008 to 40.7 billion units. Parliament cigarettescigarette is distributed in 50 markets worldwide. It is the 14th largest tobacco brand in the world and the 6th largest PMI cigarette brand. In 2008, Parliament’s volume was 37.4 billion units, an increase of 20% driven by growth in Russia, Korea, Turkey, and Ukraine. Virginia Slims is PMI’s premium cigarette stand-alone offer in the slims section. Volume was up 8.2% in 2008. Local brands Philip Morris International own a number of important local tobacco brands, enabling us to maintain strong market share in sharply differentiated markets in the world, including A Mild in Indonesia, Diana in Italy and Delicados in Mexico. We also make A Hijau and Dji Sam Soe in Indonesia, Morven Gold in Pakistan, Optima and Apollo-Soyuz in Russia, Boston in Colombia, f6 in Germany, Best and Classic in Serbia, Petra in the Czech Republic and Slovakia and Assos in Greece to name a few. Top 25 Philip Morris International brands Marlboro, L&M, Chesterfield, Bond Street, Philip Morris, Parliament, A Mild, Lark, Morven Gold, Next, Dji Sam Soe, Diana, Optima, Sampoerna Hijau, Muratti, Virginia Slims, Merit, Red & White, Apollo-Soyuz, Delicados, Boston, Multifilter, Longbeach, SG, Peter Jackson